If either you, your spouse or common-law partner moved to be closer to work, school, or to operate a business last year, you might be able to claim eligible moving expenses on your next CRA tax return. Keep reading to learn more about eligibility requirements to claim moving expenses, and for details on what you can deduct.
Your new home must be at least 40 kilometres closer to your new job or place of business than your old home. You can only deduct moving expenses from the income you earned at the new location. Full-time students who move to attend a post-secondary program at a college, university or other educational institution can also deduct eligible moving expenses from part of their scholarships, bursaries, prizes, grants and research fellowships. This is only true for the portion of these amounts that would normally be considered part of their income. To calculate your Moving Expenses Deduction, use Form T1-M. Insert your total deduction on line 219 of your general income tax form (T1).
Eligible moving expenses may include:
*If you had a tenant after you moved, these expenses are not eligible. You can only claim costs associated with maintaining your home while it was vacant.
You can also claim certain expenses related to selling your old home. These include advertising, notary costs and legal fees, real estate commissions, and mortgage penalties if you wind up paying your mortgage off before it reaches maturity. Costs associated with buying your new home are also tax deductible if they are related to a move for employment purposes in line with the above.
Certain expenses are not eligible for the moving expense tax deduction. These include:
To make sure you claim every expense you have a right to under CRA tax rules, it's a good idea to keep a spreadsheet of eligible expenses. You should also keep digital copies of your receipts. Good luck with your move!